Hong Kong-based multibrand fashion retailer I.T Limited said Tuesday its first-half net profit grew 9.2 percent excluding foreign currency losses as it registered strong sales growth in Mainland China and Japan.
I.T said it posted a net profit of 39.1 million Hong Kong dollars, or $5 million at current exchange, compared to a year earlier net loss of 31 million Hong Kong dollars, or $4 million. The retailer said its net profit would have grown 9.2 percent excluding the effects of a first-half 2015 foreign currency loss of 66.8 million Hong Kong dollars, or $8.61 million.
The speciality retailer said its sales for the six months ended Aug. 31 grew 7.4 percent to 3.64 billion Hong Kong dollars, or $469.59 million. First-half operating profit grew nearly three times to 124.98 million Hong Kong dollars, or $16.11 million. I.T sells a mix of high fashion and streewear withfrom brands like Saint Laurent Paris, Rick Owens, Comme des Garcons and Acne Studios.
I.T said its business suffered in Hong Kong on a combination of a strong Hong Kong dollar, soft local consumption and weak tourist flows; Hong Kong sales fell 2 percent. Macau sales continued to suffer, falling 9.2 percent for the period.
As for Mainland China, I.T said a 23.6 percent increase in the size of its selling area helped propel a 14 jump in retail sales.
“We have also entered into new cities such as Changchun and Nanning. Today, we have a diversified retail presence spanning across twenty-two cities in Mainland China,” I.T said.
Japan was another bright point for I.T. The company said inbound tourist flows prompted a 46.9 percent surge in sales. I.T owns Japanese streetwear brand A Bathing Ape and said its collections are meeting a positive reception.
The company said Mainland China will continue to play an increasingly important part of its retail strategy going forward as the Hong Kong market suffers. The company has been scaling back its retail footprint in Hong Kong, reducing its sales area in Hong Kong by 2.7 percent.